Las Vegas Homes for Sale Drops Nearly 50% Since November, 2011

As of today, there are just over 6,400 homes that are not under contract and available for sale in the Las Vegas real estate market. Back in late November, we had over 12,000.

That drop is significant and is causing a lot of frustrations for buyers looking for properties. They are encountering multiple offer situations on all the best homes and are having to run out immediately when a property comes on the market to have the best chance of getting the home they want.

Reviewing the market conditions, there are two situations that I see that are causing this drop in available homes:

  • Nevada legislators passed AB 284 that went into effect in October, 2011, forcing banks to produce original documents before they could file notices of default and foreclose on properties in Nevada. Banks have taken a few months to figure out how to work through this, and are just now getting back up to speed. Bank filings during the last few months have decreased well over 90%, reducing the number of available bank-owned homes on the market.
  • As bank properties became less available, Las Vegas short sale homes became the focus.  However, since the properties can take time to actually sell, buyers have been placing offers on more than one and ‘locking up’ several properties per buyer.  I believe this has caused a temporary reduction in inventory that will change as the time to process short sales with banks decreases.

In the meantime, inventory is low and buyers are panicking.  In my opinion, this will change over the next several months and we will see more inventory.  Educating Las Vegas home buyers is essential to ensure they understand how to buy in this market.

If you or someone you know is interested in purchasing a home in Las Vegas, it is a great time to buy, a little patience is necessary, and I’m here to help.

Visit my real estate site to search for homes.

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Las Vegas Foreclosure Report

Earlier today I posted that there were just under 12,000 homes available on the market for sale (single family, condos and townhouses) in Las Vegas, Henderson and Boulder City.  When we talk about these three cities, they are practically intertwined, though Boulder City is actually on the outskirts near Hoover Dam, but still close enough that someone wanting to buy a home in Las Vegas might consider this area also.  We exclude locations such as Pahrump, Mesquite and Laughlin, because it’s a long drive to each of these and Las Vegas home buyers really don’t want to be out in the boonies.

What I didn’t break down was the number of homes by type of sale – bank properties, short sales, traditional sales and flips.  The later two are both considered traditional because they involve either a normal homeowner as a seller, or maybe an investor or group of investors, but not a bank.

Everyone has been on the bank-owned home bandwagon in Las Vegas for quite some time.  “Buy a Las Vegas foreclosure, you’ll get the best deal,” has been a frequent statement.

Not so much anymore.  Let me explain why.

With 12,000 available homes on the market (read my other post today to determine what ‘available’ means), let’s look at how many of each there are:

  • Traditional homes and flips – 4,021
  • Short sales – 5,596
  • Bank-owned or foreclosures (which are the same thing) – 2,389

Notice anything special about these numbers? That’s right.  We don’t have as many foreclosures as other types.

Now look at how many SALES have happened with each type of property in the last three months:

  • Traditional homes and flips – 2,971
  • Short sales – 2,840
  • Bank-owned or 5,532

What stands out?  We’re selling bank foreclosures at a significantly higher rate than the other types of properties.

And we don’t have a lot of inventory.

The absorption rate (I’ll write a blog on this too) indicates that we only have enough bank-owned properties in Las Vegas to supply about one month’s worth of inventory to the buyers.

What does this mean to you?  Higher prices and more competition for these types of homes.  Be prepared for multiple offers on many foreclosures.

As a real estate professional working the Las Vegas market, I understand these numbers and what my clients need to do to get their offers accepted.

If you’re considering buying a Las Vegas bank property, or any other property, visit my Las Vegas real estate website to search for homes at your leisure.  You’ll have access to all the homes on the market and can search based on various criteria and save your results.

I’m here to help, so contact me when you are ready to buy.

Las Vegas Homes Selling Fast

Search for Las Vegas real estate here

Want to buy real estate in Las Vegas?  Of course you do!  You just need to know the facts.

The media may tell you that Las Vegas has been hit hard and prices are very low, and they would be right. What they aren’t telling you is that the best properties are moving fast.

So here’s the skinny on the actual numbers:

  • A total of 25,114 homes are ON THE MARKET as of this writing.  This includes single family homes, condos and townhouses in Las Vegas, Henderson and Boulder City.  Properties in Pahrump, Laughlin and Mesquite don’t count because I don’t normally drive my buyers THAT far out of Las Vegas to find a property.  If you are looking for a home in Las Vegas, you aren’t considering these other areas.
  • Of those 25,114 homes, 13,120 are CONTINGENT OR PENDING – meaning they are UNDER CONTRACT and both buyers and sellers have come to terms, it’s just paperwork and time now.  As a real estate agent, I want you to be able to buy a home, so I’m not going to show them to you and you aren’t going to write backup offers on these.  It’s a waste of time for all concerned.  What I’ll do is create a ‘search’ for you in the system and if one of these properties doesn’t actually sell and becomes available again, THEN we’ll consider it.  Good idea right?

Now do the math. 25,114 minus 13,120 leaves us with …. (drum roll please) 11,994 properties.

In the last 12 months, we’ve SOLD 45,792 homes.  Looking at the last six months, we’ve SOLD 23,614 homes.  In the last three months, 11,333 Las Vegas homes have SOLD.

There is a formula we use called ‘absorption rate’ that tells us how long it takes us sell the current inventory, if no new homes were to come on the market at all.

Depending on the length of time it takes to sell them all, that is how we determine whether it’s a Buyer’s Market, Seller’s Market, or pretty much neutral.  If it takes six months to absorb the entire inventory, then it is pretty even and neutral.  If it takes longer, then it is a Buyer’s Market because homes stay on the market longer, meaning sellers will probably consider taking less than asking price.  If it takes less than six months, it becomes a Seller’s Market, and sellers get the upper hand.  Does this make sense? (if not, email or call me and I’ll explain further)

Now, based on the above numbers, and considering ALL TYPES OF PROPERTIES – meaning single family, condos and townhomes, regardless of whether or not they are bank-owned homes, short sales, flips (that’s another blog) or traditional Las Vegas homes for sale, it will take about THREE MONTHS to sell all the current inventory.

Here’s how we come up with that number – 11,994 homes on the market right now and we sold 11,333 in the last three months.  Pretty easy math I’d say. Three months and all the inventory is GONE.

Guess who is in charge of the market?  Yes, Mr. & Mrs Seller, it’s YOU!

Does that mean you shouldn’t buy now?   Not a chance!  It means your Las Vegas real estate agent needs to stay on top of the market so that you can look at homes as soon as they come on the market and get your offer in fast.

Just be prepared to pay current list price or close.  It’s still a heck of a deal.

Visit my Las Vegas real estate site and search for the perfect home